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More than a hundred ternary borides, gallides and silicides are known which crystallize with a great variety of structure types that can be derived from the hexagonal CaCu₅ type (hexagonal, P6/mmm). However, no ternary silicide is reported being formed with Pd and Eu. We have synthesized single crystal and powder samples of the new phase EuPd₃Si₂ and investigated the crystallographic structure, magnetization, specific heat, and resistivity as a function of temperature and magnetic field. Single crystal data confirms that EuPd₃Si₂ crystallizes in the orthorhombic space group Imma (pseudohexagonal) with lattice parameters a = 7.1463(3), b = 10.0711(4), c = 5.7469 (2) Å. Long-range ferromagnetic order at T_C = 78 K and a possible spin rearrangement at T* = 5 K appear as distinctive features in all physical properties investigated. The electronic band structure calculations using the PBE+U method within the density functional theory approach corroborate the orthorhombic structure and ferromagnetic ordering of Eu²⁺ spins. The band structure calculations also show that the Pd derived d-band polarization is along the Eu f polarization, resulting in an enhancement of the spin moment in ordered states.